[EN] Data Center Market in Brazil 2014-2018

The Data Center market in Brazil is forecast to grow at a CAGR of 14.08 percent over the period 2013-2018. One of the key factors contributing to this market growth is the increasing government support for IT initiatives. The Data Center market in Brazil has also been witnessing the growing adoption of cloud computing services. However, the need for data

center management expertise could pose a challenge to the growth of this market.

Cloud computing and cloud-based services are witnessing an increasing adoption among enterprises across the globe. To cater to the computing and storage requirements of enterprises, the cloud computing service providers are establishing data center facilities equipped with high-performance computing equipment. Brazil is emerging as a preferred destination for the enterprises across the globe to outsource their IT services and data center facilities. Many large enterprises are establishing their own data center facilities in Brazil, driving the Data Center market in Brazil. With the increasing demand of end-users on the type of services being procured, there is an increasing complexity of the data center facility, which is further leading to increasing demand.

One of the major drivers is the increasing government support being provided for IT initiatives in the country. There has been a considerable amount of initiatives that have been taken to increase IT investments and infrastructure development in the country. The number of end-users of internet services is also increasing at a rapid rate, creating a demand for data center services.

Further, one of the major challenges is the need for data center management expertise. Enterprises are finding it difficult to hire an expertise which can efficiently monitor and manage the performance of their network. With the increasing complexity of the enterprise business, there is a considerable increase in the complexity of the network.

Brazilian data center on track according to Oracle

Could be first of many in LATAM

Oracle is building its first data center in Brazil, it confirmed at Oracle Day in Chile, with the facility on target to be completed by the end of 2014.

With the new facility, Oracle's global cloud infrastructure will include 18 data centers designed to support the company's open-source based cloud portfolio, including applications, social platform and infrastructure services.

The construction was in part a reaction to the controversy over the lack of data sovereignty and the need for local data storage, which became a major discussion topic in Brazil this year during the Marco Civil da Internet (internet bill of rights) debate.

Brazil's federal government had attempted to include a local storage directive in the bill, in response to growing concerns created by the US National Security Agency (NSA) spying scandal.

However, in order to ease the bills passage through the lower house of the National Congress of Brazil, the legislation was amended.

Lobbying from industry, with representations from vendors such as Google and Twitter's general director for Brazil, questioned the government's arguments.

Many feared that Brazilian national competitiveness could be affected.

Oracle’s Latin American applications SVP Eduardo López told BNAmericas that issue about the location of data storage had become “a bit of a red herring.”

"In reality all of Oracle's data centers that provide cloud and Software-as-a-Service (SaaS) are the same, developed in the same way, and are interconnected,” López said.

"They are all hi-tech. It's not as if the Brazil data center will be designed in a unique way for Brazil.”

The Oracle Corporation designs the data centers and connects them with the others ones around the globe forming a network for the purposes of backup, he said.

The original statement of intent to build a Brazilian data center was made in December 2013 by CEO Mark Hurd.

There are no plans for more data centers in the region, but that may change if demand grows, said López.

“As the business grows, we will distribute data centers throughout Latin America," López said.

"We'll finish one, put it in operation and then look at the next one".

...

Long-term thinking always wins.

It’s easy to forget in a world of quarterly earnings and activist investors looking for quick short-term gains, but companies that stick to their long-term strategies tend to outperform their competition.

Customers asked a lot of questions about Oracle’s commitment to places like Brazil, where the economy is suffering a short-term hiccup. According to Hurd, though, Oracle remains committed to Latin America, because of the real long-term promise of the region. The company has made significant investments in hiring and new infrastructure (such as data centers opening soon in Germany and Brazil) and short term fluctuations in growth “will not change our view on that,” Hurd said.